California Overtakes Japan to Become Fourth Largest Economy in World
Newsweek2 days
California Surpasses Japan as World's Fourth-Largest Economy
Above: California Governor Gavin Newsom at Gemperle Orchard on April 16, 2025, in Ceres, California. Image copyright: Justin Sullivan/Staff/Getty Images News via Getty Images
The Spin
Republican narrative
Despite being the world's fourth-largest economy, California struggles to address homelessness and wildfire protection. And, despite allocating billions to combat homelessness, the population continues to rise. Additionally, insurance companies are reducing coverage in fire-prone areas, leaving residents vulnerable. These issues will sooner or later derail California's growth trajectory.
Democratic narrative
California's economic success highlights its resilience, which shines through its ability to recover from natural disasters, economic downturns, and social challenges. Despite wildfires, droughts, and housing crises, the state adapts through innovation, policy reform, and community strength. Its strong commitment to sustainability helps it rebound and thrive, making California a global economic powerhouse.